{"id":5480,"date":"2015-08-26T01:00:56","date_gmt":"2015-08-25T15:00:56","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=5480"},"modified":"2015-08-26T01:00:56","modified_gmt":"2015-08-25T15:00:56","slug":"what-makes-a-good-granny-flat-site","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/what-makes-a-good-granny-flat-site\/","title":{"rendered":"What makes a good granny flat site? &#8211; Jo Chivers"},"content":{"rendered":"<p>&nbsp;<br \/>\nIn today&#8217;s show <strong>Jo Chivers<\/strong>,\u00a0from Property Bloom, tells us what to look for in assessing if an investment property is suitable for a granny flat. There are some that suit and some that don\u2019t. We find out which is which.<br \/>\n&nbsp;<\/p>\n<h4>Transcript:<\/h4>\n<p><b>Kevin:<\/b>\u00a0 My guest this time is Jo Chivers. Jo is from Property Bloom. They are property development project managers.<br \/>\nJo, welcome to the show. How are you?<br \/>\n<b>Jo:<\/b>\u00a0 Hi, Kevin. I\u2019m great, thanks. How you going?<br \/>\n<b>Kevin:<\/b>\u00a0 Good, thank you. I know you\u2019re written a lot about granny flats, and that\u2019s what I want to talk to you about. What makes a good granny flat site? What are the attributes you look for?<br \/>\n<b>Jo:<\/b>\u00a0 We run a lot of granny flat projects for our clients. The benefit of a granny flat project is a high yield strategy. What we\u2019re looking for in a property is a house on a large piece of land with plenty of room to build a granny flat.<br \/>\nSpecifically, with the house itself, we always look for a three- or four-bedroom home, or a home that we can add a bedroom to. It\u2019s important to get the most rental return from that initial dwelling that is on the land.<br \/>\nForm the land\u2019s perspective, we obviously look at location first. We do a lot of research on the suburbs we work in. We focus just in the Hunter region of New South Wales, as you know. We\u2019re experts in that area. We look for location, firstly, and once we find a good property in that suburb we will drill down and look at various other factors. The factors are large block size.<br \/>\n<b>Kevin:<\/b>\u00a0 How large, Jo?<br \/>\n<b>Jo:<\/b>\u00a0 We\u2019re looking from 800 square meters plus. I know that in a lot of the capital cities, people are putting a granny flat on smaller block of land, which is fine as long as it works. But up in the bigger regional cities where we work, we don\u2019t want to cram our tenants. We want to make sure there is enough private outdoor living space for the house tenant and also for the granny flat tenant.<br \/>\nThere\u2019s nothing worse than trying to put a granny flat onto a piece of land if it\u2019s just not big enough. I know some people are doing that in Sydney on 400 or 500 square meters of land, but I just think that in the future, when the rental market may not be so strong, they\u2019re going to get in trouble and the demand might drop on those types of dwellings.<br \/>\n<b>Kevin:<\/b>\u00a0 How important is it to have separate access, as well?<br \/>\n<b>Jo:<\/b>\u00a0 Yes. Separate access for the tenants is fantastic, and that\u2019s one of the things that we must have in a site for our Property Bloom clients. We always look for land that has either a rear lane access, or is a corner site, or it\u2019s a two-road frontage. That way, the granny flat tenants can access their dwelling from the back, and they don\u2019t have to walk down the side of the existing house.<br \/>\nWe also make sure there\u2019s enough off street parking space, as well. You don\u2019t have to put off street parking for the granny flat as part of the requirements, however we find tenants do want to park as close as they can. They don\u2019t want to be parking too far away.<br \/>\n<b>Kevin:<\/b>\u00a0 What\u2019s the cost of putting on a granny flat?<br \/>\n<b>Jo:<\/b>\u00a0 The cost for us at the moment, with the builder we\u2019re using, is around $109,000. There are some additional costs such as the service connection and the upgrade if the electrical system of the existing home is not adequate to support the granny flat. That\u2019s an area that some people forget to check. If there\u2019s an upgrade required, we always budget that in.<br \/>\nAlso, the council section 94 contribution. That\u2019s at the discretion of the local councils in New South Wales to charge. Most of them are charging it now, so you have to make sure that you allow for that, as well.<br \/>\n<b>Kevin:<\/b>\u00a0 What are you finding? Is this mostly a strategy being used by people who want to get more income out of an existing rental property, or is this a good option for people who want to buy something, add to it, and then sell it on?<br \/>\n<b>Jo:<\/b>\u00a0 I believe it\u2019s more of a medium-term hold strategy. When you have got a good decent yield \u2013 we\u2019re seeing around 7% to 8% gross yield, and if you\u2019re borrowing at 4% or 4.5%, that\u2019s a really nice yield at the moment \u2013 I think it\u2019s a long-term hold.<br \/>\nIt\u2019s really not a strategy that you can use to flip \u2013 what some people refer to as flipping, which is to build and then sell. I don\u2019t think you\u2019re going to make enough equity out of that, purely because you can\u2019t subdivide off that granny flat. When you do sell it, you obviously have to stay on the same title as the house, so it\u2019s not really what we would call an equity creation strategy; it\u2019s more a high-yield strategy.<br \/>\nI think it\u2019s a medium- to long-term hold strategy, where you can sit on it, get it tenanted, and then the rent is really going to cover your outgoing in most cases.<br \/>\n<b>Kevin:<\/b>\u00a0 If you want to know a little more and you want to contact Jo, you can do that through the website PropertyBloom.com.au<br \/>\nJo Chivers from Property Bloom, thank you so much for your time.<br \/>\n<b>Jo:<\/b>\u00a0 You\u2019re welcome, Kevin. Thank you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; In today&#8217;s show Jo Chivers,\u00a0from Property Bloom, tells us what to look for in assessing if an investment property is suitable for a granny flat. There are some that suit and some that don\u2019t. We find out which is which. &nbsp; Transcript: Kevin:\u00a0 My&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":5481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,13,25],"tags":[101],"class_list":["post-5480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What makes a good granny flat site? - Jo Chivers - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/what-makes-a-good-granny-flat-site\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What makes a good granny flat site? - Jo Chivers - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"&nbsp; In today&#8217;s show Jo Chivers,\u00a0from Property Bloom, tells us what to look for in assessing if an investment property is suitable for a granny flat. 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